Option Investor
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In last night's newsletter I showed a chart of the banking index, the BIX, and thought we might see a rally up to about 102 to finish an a-b-c bounce off the March low. With the turnaround in BIX this morning and a push up to that 102 level (slightly above) we could be seeing the top of the run today. At least that's the potential setup. The short-term pattern for the rally off this morning's low would look best with a small pullback and then a new high this afternoon to finish the pattern. That might also give us a small throw-over above its potential rising wedge pattern for the rally from March. If it rallies a little higher and then drops back below 100 it would give us a sell signal.

BIX daily chart:
[Image 1]

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